The controvertial Senate Bill 497 is inccredibly complicated and is not even really understood by professional tax lawyers and accountants.  However, in recent developments surrounding the new law,  there have been attempts to make it more clear so that ordinary people have a greater chance of understanding it.  Legislataors now recognise that “Businesses want clear, objective rules.”  However, there has been anger with the internal audit division of the IRS because of the the aggressive auditing now taking place in their favour. This is compounder by the fact that the LLC tax makes above reasonable compensation is taxed at 13.5% instead of 8.5%.  The new legilisation is supposed to offer businesses  ‘two so-called safe harbors’.  This will allow business owners to more easily work out what they owe as a result of the compensation factor.  The bill totally reforms the the state’s Interest and Dividends tax.  This will allow th government to appeal to a new consitutency in an election year.  Democratis politicians in NEw Hampshire are seizing on the opportunity to talk about tax cuts as LLC taxes are moved away from 13.5%.